Worthington Industries Inc (WOR)
Return on assets (ROA)
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 256,528 | 379,386 | 723,795 | 78,796 | 153,455 |
| Total assets | US$ in thousands | 3,650,920 | 3,643,020 | 3,373,240 | 2,331,520 | 2,510,800 |
| ROA | 7.03% | 10.41% | 21.46% | 3.38% | 6.11% |
May 31, 2023 calculation
ROA = Net income ÷ Total assets
= $256,528K ÷ $3,650,920K
= 7.03%
Worthington Enterprises Inc.'s return on assets (ROA) has exhibited fluctuations over the past five years. In 2023, the ROA declined to 7.03% from 10.41% in 2022. This decrease suggests that the company's ability to generate earnings from its assets has weakened. However, the 2023 ROA remains higher than the 2019 and 2020 figures, indicating some improvement in asset utilization compared to those years.
The significant drop in ROA from 21.46% in 2021 to 3.38% in 2020 suggests a substantial decline in the company's ability to generate profits relative to its assets. This may indicate a decrease in asset efficiency or lower profitability. The subsequent increase in ROA to 10.41% in 2022 could be indicative of a recovery in asset performance.
Overall, the fluctuating ROA reflects changes in the company's effectiveness in generating profits from its assets, highlighting potential shifts in asset management or profitability over the analyzed period. Further analysis of the company's financials and market conditions could provide additional insights into the factors driving these fluctuations.
Peer comparison
May 31, 2023